Samsung will overtake Intel as top global semiconductor supplier in 2017

Samsung’s semiconductor business has leapfrogged the competition significantly over the past few years. It ended Intel’s 24-year reign as the largest chipmaker in the world in the second quarter of this year. Samsung’s chip business posted higher revenue and operating profit compared to Intel during the period.

Market research firm IC Insights predicts that Samsung is now expected to lead Intel in full-year 2017 semiconductor sales by a staggering $4.6 billion.

Samsung overtakes Intel

This prediction goes to show that Samsung’s stellar performance in Q2 2017 wasn’t a fluke. There’s enough wind in the division’s sales to come out ahead of Intel in 2017.

Samsung first displaced Intel from its top spot in the second quarter of this year. Intel had been holding on to this position since 1993. Samsung’s growth has been impressive given that Intel’s sales were 40 percent greater in Q1 2016. Samsung was able to turn the tables in just a little more than a year.

Intel is now expected to trail Samsung for the full-year 2017 sales by $4.6 billion. Samsung has the surge in DRAM and NAND flash prices to thank for this.

Samsung is expected to account for 15 percent of the global semiconductor market by the end of this year compared to Intel’s 13.9 percent.

The Korean giant is keen to consolidate its position. It aims to crush rivals with a massive surge in spending to increase capacity and advancement of its technology.